Regulatory feedback adds $23bn to Goldman’s RWAs

The revision to the bank's standardised RWAs brought it closer to hit the so-called Collins floor

Goldman Sachs’ total risk-weighted assets (RWAs) calculated using the standardised approach inflated by $23 billion in the third quarter, following what the bank called “regulatory feedback” on the way it had so far interpreted capital rules.

The revision increased the bank’s end-September standardised RWAs by almost 4% to $664 billion. Its Common Equity Tier 1 (CET1) capital ratio dropped by half-a-percentage point as a result, to 14.1%.

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Had the changes been implemented as of end

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